Sociable

Wednesday, October 6, 2010

Ohio AG sues Ally Financial over foreclosures

I think this is the first lawsuit I know about where a state is suing a mortgage service company. and the "paper mill gate".  Except for the Well Fargo settlement which concerned disclosures with Alt-A loans.
The action could be the first in a wave of lawsuits by state regulators over what appear to be widespread problems in documents used by the nation's largest mortgage lenders.
Attorney General Richard Cordray said Wednesday the alleged fraud could involve hundreds of foreclosures in the state. The lawsuit claims the company's employees signed and filed false affidavits to mislead courts. Cordray called the alleged fraud the "tip of an iceberg of industrywide abuse of the foreclosure process."
And this what he is asking
Cordray is asking for civil penalties of up to $25,000 for every violation of the state's consumer laws and for the company to pay back any financial losses to the homeowner. He also wants the court to halt any Ally foreclosure or sale of property now pending in Ohio.
If the homeowner is not paying their mortgage what is the financial loss?
Read it all

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